I've been looking all over for decent instructions on how to get hgweb working on IIS but I haven't found much of worth.
There's this "step by step" on the Mercurial wiki, but it's not very good. There's also this and this, but again, I can't find good steps to lead up to where those get started.
I just had to install a fresh Mercurial instance yesterday, here's updated instructions for 1.7:
hg clone https://www.mercurial-scm.org/repo/hg/
Create a folder that will be your web application folder. You will need to copy three things into this folder:
You will need to make sure you have Python set up in IIS.
You will also need to create a file named "hgweb.config" with contents similar to below. The path within the file needs to be the location on your drive where you want to store the Mercurial repositories:
[collections]
c:\Mercurial\repos = c:\Mercurial\repos
Edit the hgweb.cgi file and change the line where it sets the path to your hgweb.config to something like the following (wherever the hgweb.config file is):
config = "C:\Mercurial\hgweb.config"
Also, check out Jeremy Skinners blog post . It's a little outdated, but has some extra nice steps like setting up URL re-writing for cleaner URL's.